A non-discriminating monopolist maximizes total revenue when its marginal revenue is
A. negative.
B. positive.
C. equal to price.
D. zero.
Answer: D
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The SAS curve shifts if there is a change in
A) the price level. B) real GDP. C) nominal GDP. D) potential GDP.
Which of the following statements about the rate of return is NOT correct?
A) The total rate of return may be greater or less than the current yield. B) The total rate of return may be greater or less than the rate of capital gain. C) The total rate of return may never be negative. D) The total rate of return is greater than the coupon, holding everything else constant.
Suppose that 10,000 people are willing to spend a maximum of $20 each to preserve one acre of rainforest. A conservation group mails out a request to each person asking him or her to mail in $40 to preserve one acre of rainforest. How many acres of rainforest will be preserved with this program?
a. Zero acres b. 1,000 acres c. 5,000 acres d. 10,000 acres e. There is not enough information to answer the question
One implication of the shape of the demand curve facing a perfectly competitive firm is that:
A. the market would be unable to reach a new equilibrium if demand changed. B. if the firm increases its price above the market price, it will earn zero revenue. C. if the firm decreases its price below the market price, it will earn higher revenue. D. if the firm increases its price above the market price, it will earn higher revenue.